Rashmikant Bhaichandbhai Shah Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad Restores Alternate Deduction Claim: AO to Examine Donation to Gujarat Cancer Society u/s 35(1)(ii)
The Ahmedabad Bench (SMC) of the ITAT allowed the assessee’s appeal for AY 2021-22 for statistical purposes by restoring the matter to the Assessing Officer for fresh examination. The assessee had made a donation of ₹2.15 lakh to the Gujarat Cancer Society and initially claimed deduction under section 80GGA, which was disallowed in the intimation under section 143(1) on the ground that the assessee had business income.
The assessee alternatively claimed deduction under section 35(1)(ii), contending that the Gujarat Cancer Society was a notified institution engaged in scientific research. The lower authorities rejected this alternate claim, including in rectification proceedings under section 154. The ITAT observed that tax authorities are expected to assist taxpayers in claiming lawful deductions and should not deny legitimate claims due to bona fide mistakes. Accordingly, the Tribunal directed the AO to verify the eligibility of the donation under section 35(1)(ii) and grant the deduction if the statutory conditions are satisfied. The appeal was treated as allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 27/02/2025 passed u/s.250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year (AY) 2021-2022.
